Is Microsoft working on handheld console?

To be honest our only question is why has it taken so long. But, Microsoft looks rumoured to be working on a hand-held version of its Xbox 360 to rival the Sony PSP Go.

Speaking to that famed gaming mag Variety Microsoft’s president of entertainment and devices division, Robbie Bach said that the portable market was “important”.

“You have to decide which direction the market is going, though. Is it going to stay with portable devices and continue to grow or is the phone you get going to be powerful enough to handle games?” said Bach.

“I’m probably more biased to think that [phones are] the direction the market is going.”

He also shone some light on Project Natal, the development that may see the end of traditional controllers in favour of hand gestures. He said that the price will start high then gradually fall.

“Relative to Natal, we’ll see how the pricing cost works out,” he said. “But people should except that it will go through the usual price curve.”